• The crypto executive Do Kwon behind the Terra USD collapse has been arrested in Montenegro.
• He was found to be holding phony passports and documentation.
• South Korea, USA, and Singapore are demanding his extradition.
Do Kwon Arrested
Do Kwon – the crypto executive behind the Terra USD collapse that occurred in the summer of 2022 – has been arrested and taken into custody. He had allegedly been a fugitive these past few months until he was apprehended in the European nation of Montenegro, where he was found to be holding phony passports and documentation. The country’s interior minister Filip Adzic issued a statement confirming his arrest.
Terraform Labs & Luna Token Collapse
The collapse of Terra USD and its alternate Luna token cost crypto investors billions in hard-earned investment funds. In late 2022, South Korea issued an arrest warrant for Kwon due to his status as CEO of Terraform Labs, which created both assets. Before his disappearance from social media in February 2023, Kwon stated on Twitter that he was willing to cooperate with authorities but only if they proved he ran from law enforcement by coding from his living room.
Fingerprints Matching Those of Kwon’s
Montenegro authorities reported that Kwon had allegedly tried to travel to Dubai using a phony Costa Rican passport along with a fake Belgian passport when he was detained at Podgorica airport. On confirmation of these reports, South Korean law enforcement agencies have confirmed that the fingerprints of the arrested man match those of Kwon’s, suggesting they now have their man.
Algorithmic Stable Coin
Terra USD had been classified as an “algorithmic” stable coin meaning it wasn’t tied to any serious collateral (i.e., gold or precious metals) or fiat currencies – its value only stayed consistent when people chose to believe in it. This lack of collateral likely played a role in its downfall as investors were unaware and unable to trust it for long-term investments..
Extradition Requested by 3 Nations
South Korea, USA, and Singapore are all requesting extradition for Do Kwon due to being accused for being responsible for losses amounting up to 40 billion dollars during the Terra USD collapse incident last year summer – making him one of world’s most wanted fugitives today after being detained with falsified documents at Podgorica airport earlier this month..